Soda Protocol is holding a supply ranking campaign that rewards liquidity providers on the platform.
Liquidity Provider to be Rewarded
Soda Protocol announced rewards for the Liquidity Providers (LPs) on their platform on Nov. 23 via a Twitter post.
The supply ranking campaign will have 2 million SODA tokens, i.e. 1% of the token’s total supply. The campaign will begin on Nov. 25 at 14:00 UTC and will extend till Dec. 24 at 16:00 UTC. The protocol will take snapshots of all the LP’s total supply in the lending pool at intervals during the designated campaign period. The participant’s rewards will be determined by the average liquidity value of all snapshots.
“In the following months, Soda will have more campaigns (including joint campaigns with partners), and send out more exclusive NFTs. Some certain combinations of NFTs will have the chance to get special rewards and farming bonuses,” mentioned the official Medium blog about the announcement.
The top 100 liquidity suppliers will get a special NFT according to the rank they have earned. The holder will also share the reward pool proportionally. The 1st rank will be The King, 2nd – 20th Rook, 21st – 50th Bishop, and 51st – 100th Knight. The rewards for the King will be at least two times more than a Rook’s rewards, while the Rook’s rewards are at least two times that of the Bishop’s, and the Bishop’s is two times more than a Knight’s.
Tiered Reward Pool
Once the total supply of the lending pool hits 10 million USD Coin (USDC) tokens, 1% of the reward pool will be unlocked to be awarded to the winners. Beyond this the reward pool will be unlocked in a tiered manner as listed below:
30 million USDC – 6% of the pool unlocked
60 million USDC -15% of the pool unlocked
90 million USDC – 30% of the pool unlocked
120 million USDC – 50% of the pool unlocked
150 million USDC – 65 % of the pool unlocked
180 million USDC – 80 % of the pool unlocked
220 million USDC – 100 % of the pool unlocked
More than million USDC – Hidden bonus: Queen
“However, if the total supply in the lending pool is less than 220M when the campaign’s over, half of the left tokens will be rewarded to the top 10 suppliers, and another half will be burned,” declared the blog further on the contingency plan for in case the pool doesn’t get sufficient funding.
Additionally, different cryptocurrencies will have different coefficients while calculating the average supply of the lending pool. USDT, USDC, and RAY will have a coefficient of 2 while SOL, SRM, BTC, and ETH will have a coefficient of 1.
As previously reported by Solana.News, the Soda Protocol launched its mainnet on the Solana blockchain network earlier this month on Nov. 13. The protocol attempts to be the first decentralized lending protocol on Solana with a feasible credit rating system.
About Soda Protocol
Soda is a decentralized lending and borrowing protocol built on the Solana ecosystem that uses an on-chain credit rating system that gauges the historical behaviors of the addresses involved in the borrowing and lending transactions. SOL ID, the rating system, behaves as a foundation for the credit loans, airdrop options, and governance of the protocol. It enables users to extract value for good behaviors with their address in the past.
Find more about the Soda Protocol here:
Source : solana.news